Anton Emmanuel's Blog

As new – and perhaps – questionable businesses are born, the notion of ethics has been a resounding theme.  One business in particular, ashleymadison.com (AM), has recently come under public scrutiny.  In essence, AM is a social network that facilitates adultery .  With a growing user base and swelling revenues, AM has seen an increase in popularity;  but at the same time, faces mounting disdain from critics who feel the site is immoral and profits from an unseemly act.

So, I raise the question, is there a role for morality in business?  Better yet, how is the distinction  between what is considered moral or immoral, made?  In my perspective, the notion of morality is relative, and is left to individual discernment.  Personal philosophy, culture, and religion are just some, of many, factors that shape moral perception.  A seemingly depraved act in the eyes of one individual has the potential to be seen by another as a conventional norm.  In the context of a free-society with instilled rights and protections, we are empowered to carry out the actions we see fit, as long as they do not infringe on regional institutions, or the rights of other individuals.

Therefore, irrespective of my personal beliefs on the matter, I would argue that morality should not have to be combed into AM’s business plan.  In fact, in the pursuit of profit, AM provides for an underserved market segment, and creates distinct value for its clients.  Although its public image may be bruised, AM does not rely on fluffy perception to attract clients, and consequently, is not significantly affected.

Honestly speaking, I’m a huge proponent of corporations working towards the betterment of society through social responsibility.  However, technically speaking, as Robert Friedman maintains, business executives have a fiduciary obligation to owners of a company.  And if said owners deem morality and social responsibility should be subordinate to maximizing profit, then respectfully so, that directive should be followed.

Check out this Financial Post article that offers further insight on ashleymadison.com.  Information was also sourced from this article.

Other sources:

Forbes